Apple Reports 3Q 2018 Results: $11.5B Profit on $53.3B Revenue and 41.3M iPhones

[MacRumors]

Apple today announced financial results for the third fiscal quarter of 2018, which corresponds to the second calendar quarter of the year. For the quarter, Apple posted revenue of $53.3 billion and net quarterly profit of $11.5 billion, or $2.34 per diluted share, compared to revenue of $45.4 billion and net quarterly profit of $8.7 billion, or $1.67 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with international sales accounting for 60 percent of revenue. Apple also declared a quarterly dividend payment of $0.73 per share, payable on August 16 to shareholders of record as of August 13.

Apple sold 41.3 million iPhones during the quarter, up slightly from 41.0 million a year earlier, while Mac sales fell to 3.72 million units from 4.29 million units in the year-ago quarter. iPad sales rose slightly to 11.55 million from 11.42 million.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth," said Tim Cook, Apple's CEO. "Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline."

Apple's guidance for the fourth quarter of fiscal 2018 includes expected revenue of $60-62 billion and gross margin between 38 and 38.5 percent.

Apple will provide live streaming of its fiscal Q3 2018 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Apple's conference call has concluded. A rough transcript is ahead...


Click here to read rest of article...

Article Link: Apple Reports 3Q 2018 Results: $11.5B Profit on $53.3B Revenue and 41.3M iPhones

 

[826317]

These figures will never cease to amaze me.

 

[OldSchoolMacGuy]

What happened to all the "iPhone X is a failure."?

 

[xbankaiz]

That's quite a dip in Mac sales. Hope to see some really good numbers in the 4Q 2018 and an even better 1Q 2019 with the rumoured updates for the remaining Mac lineup.

 

[nelsonammo]

And people are complaining about Tim Cook? LOL

 

[PickUrPoison]

iPhone ASP at $724, iPhone X still selling very well... to say the least.

ASP last year:

Q2: $655
Q3: $606


This year:

Q2: $728
Q3: $724

Almost no erosion in ASP from Q2 to Q3 this year. iPhone X is killing it.

 

[KPOM]

That's quite a dip in Mac sales. Hope to see some really good numbers in the 4Q 2018 and an even better 1Q 2019 with the rumoured updates for the remaining Mac lineup.

There was no new hardware until the current quarter.

Overall this was a solid quarter, and Apple’s guidance for the current quarter was better than expected.

 

[Aussi3]

I can see trillion dollar mark!

 

[BootsWalking]

Another year of flat iPhone sales. Unless Apple is planning a $1400 iPhone I'm not sure how they can continue to increase their net earnings, short of just buying back more shares to goose the earnings-per-share figures.

 

[Feenician]

Services has really become a helluva chunk of the pie!

 

[PickUrPoison]

That's quite a dip in Mac sales. Hope to see some really good numbers in the 4Q 2018 and an even better 1Q 2019 with the rumoured updates for the remaining Mac lineup.

Not surprising, people are holding out for the new models that are widely expected.

Also as mentioned in the conference call, last year’s Q3 included the release of the 2017 MacBook Pro. This year’s Q3 doesn’t have that, it won’t be reflected until Q4 (Jul/Aug/Sept).

 

[Jodeo]

If 10% of sales are Macs, isn't it time to trim the price on them? Doing so would boost sales, market share and overall revenues. Computers aren't going away, and tablets will never fully replace them - not for another 10-20 years, anyway.

 

[PickUrPoison]

I can see trillion dollar mark!

Currently at $953 billion with the $5.00 share price increase after hours.

 

[Jodeo]

7% = Other
(read: Dongles)

 

[rishic89]

What happened to all the "iPhone X is a failure."?

and it being a beta product?! haha

 

[xbankaiz]

There was no new hardware until the current quarter.

Overall this was a solid quarter, and Apple’s guidance for the current quarter was better than expected.

Which is why I'm very optimistic for the next two quarters

Not surprising, people are holding out for the new models that are widely expected.

True, myself included as I really want to get an updated Mini as a second home computer.

 

[mtneer]

Amazing spikes in the iPhone net sales chart year after year! That seasonality is so strong - almost like an exaggerated text book example!

 

[FFR]

Now We know where s9 sales went...right to apple.

Next quarter iPhone X plus.

 

[PickUrPoison]

7% = Other
(read: Dongles)

Lol nah... AirPods, Apple Watch, AppleTV, HomePod, Beats and sure some adapters. But Apple has left the market for cables and adapters mostly to third parties.

 

[Solomani]

That's a very bad optic for Macs, the only major product line that decreased significantly. Even the crappy iPads did better (slight uptick in sales).

 

[FFR]

7% = Other
(read: Dongles)

Try Apple Watch, Apple TV, airpods, beats headphones.
You know everything else.

 

[Apache1]

If 10% of sales are Macs, isn't it time to trim the price on them? Doing so would boost sales, market share and overall revenues. Computers aren't going away, and tablets will never fully replace them - not for another 10-20 years, anyway.

If people really want a cheap laptop they can buy a Win laptop for as little as $199, I don't think Apple needs to go down that road of competing with throw away laptops.

 

[DocMultimedia]

My shares are happy campers. And my dividends.

 

[MTW]

Raising the price (by a lot) of your key product tends to do that.

Tim should probably stop attempting to please Wall Street's incessant demand for increased revenue (and profit) seeing as Apple will eventually run out of room to raise prices. Apple should be inventing the future, not trying to wring out another 30% from the iPhone.

What happened to all the "iPhone X is a failure."?

It's not the product I would have made, and it doesn't overwhelmingly dominate iPhone sales, but it is so much more expensive than the iPhone 8 that even modest success was sure to materially boost Apple revenue & profit.

Of course, it's not a modest success, it's a fairly big one. But it's not massively dominant.

 

[redman042]

and it being a beta product?! haha

Beta product my arse. The iPhone X is the most polished and capable piece of technology I've ever owned. Seems like most consumers are learning that as well.